All Forum Posts by: Michael Craig

@Joe Arida

Tenants are jointly and severely liable. In the new lease make a point that security deposit has been paid. Have them figure out how they want to reimburse one another - Don't refund any money.

@Noureen A S. 

My policy for holding units for tenants is they must submit an application, qualify for the unit (this includes references checking out), and the security deposit must be paid. Unless these conditions are met, the unit will remain listed and showings will be scheduled.

You have to ask yourself if it is worth passing on two months rent to hold a unit. Can you find a tenant just as qualified in that time frame who is willing to move in sooner?  

@Michael Spindler have you considered a live in flip? Purchase the home using an FHA loan - 3.5% down You can even finance the renovation using an FHA-203k loan. The only down side is you're obligated to live in the house for at least a year (unless you refinance out). However, good way to get started.

@Dave Fagundes

I am renovating a unit which will be available 1 April. Did you find a method that allowed you to rent your unit during the renovation? Thank you for your feedback.

All,

I recently moved out of a 3 family home that is fully occupied. While I was living onsite I paid trash removal and took out bins every week. Now that I am offsite I am not around to take out bins.

In the lease, I clearly state trash removal is sole responsibility of tenants. Despite this fact I decided to keep garbage in my name and pay monthly garbage fee. The two gentlemen on the first floor are young able bodied who will have no problem taking out the bins each week. 

Is it too much to ask them to do it? I know it isn't fair for them to take out garbage for the rest of the building but then again I am not obligated to keep garbage removal in my name and pay.

@Taylor Holden 

Sounds like you have a motivated seller. With knowing the true NOI what price makes sense for you to buy? Seems like a lot of opportunity.

@Juan Castro 

Go buy a tube of caulk and fill it in yourself, this isn't a job you should hire out. Also, be careful when it comes to crediting tenants through rent. If you are reimbursing your tenant for any reason it should be through a separate transaction so there is no confusion to why rent was lower one month.

@Dan Jordan see you there

@Tyler Speelman First thing you want to do is try and get them out voluntarily. If you cannot then you can serve them with holdover eviction forms after 03/01, unless your agreement to break the lease early is not in writing. If the agreement is not in writing, tenant can claim you never had the discussion and your case will be thrown out. This will mean the original lease is still active.

If that is the case, get an attorney and start the eviction process. The eviction will have to be based on tenant violating the lease. How are tenants violating lease - smoking on premise, cops being called, etc.?

When does the lease end? Might be easier to not renew lease and submit notice.

DISCLAIMER: I AM NOT AN ATTORNEY, GO GET ONE

@Benjamin Kennel I recommend listening to BP podcast #223 if you have not already.

House hacking is probably the most forgiving, most educational and has the lowest barriers to entry form of REI. I think you will find that you will sacrifice the least by going this route.

To answer your question though, FHA has the most favorable interest rates. Shop around, but I think you will find FHA to be most desirable for what you are looking for. How much to put down depends on what you are trying to achieve. If you are looking for a fixer upper and plan on refinancing out in 6-12 months put the minimum down but if you are looking for a a buy and hold with little value add put the 20% down to eliminate the PMI. Also, with the high down payment, your cash flow numbers will look more favorable, making your first years of REI more forgiving.